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Four Western Pennsylvania men are accused by the state attorney general in connection with stealing commercial truck tires and construction tools from businesses in Westmoreland and Fayette counties.

Attorney General Kathleen Kane's office announced today the arrests of David F. Wray, 44, of Fayette City; John P. Kerr Jr., 44, of Elizabeth; Shane M. Pierce, 33, of West Newton; and Jason M. Walters, 33, of Herminie.

According to criminal complaints, Mr. Wray, Mr. Kerr and Mr. Pierce were charged in connection with two separate thefts of tires from Kenworth Truck Sales in New Stanton. The three men also are accused of stealing items from Cleveland Brothers Equipment Co. in New Stanton and Hunter Truck Sales in Smithfield. The three men additionally were responsible for thefts from Casturo Inc. in Wyano, CSX Truck in West Newton and a Penn Line Service truck in Smithfield, according to investigators. Construction tools and related equipment were reported stolen in those thefts.

Mr. Walters was charged in connection with one theft from Kenworth Truck Sales. During that incident, members of the Western Regional Auto Theft Task Force conducted a stakeout of the business. During the operation, investigators apprehended Walters, Kerr and Pierce after they allegedly removed four tires and rims from a commercial truck. Troopers from the Pennsylvania State Police Greensburg barracks assisted in the arrests.

Mr. Wray also is facing additional charges that stem from drug and firearm violations. The execution of a search warrant led investigators to find him in possession of a large amount of suspected marijuana. Searches also resulted in Mr. Wray being found in possession of the following stolen items: multiple firearms, two skid steer loaders, a John Deere farm tractor, a Kubota side-by-side utility task vehicle, several trailers and power equipment. The estimated value of the recovered stolen property is $160,000.

Source of article click here: Post Gazette

New pay rates will apply to owner-drivers but forthcoming legislation may delay changes until January 2017

The federal court has lifted an order delaying the introduction of new minimum pay rates for owner-drivers in the trucking industry that were intended to reduce road deaths by removing financial incentives to skip breaks or speed.

In December the road safety remuneration tribunal made its first minimum pay order for owner-drivers, which was due to come into effect last Monday.

But the federal court in Brisbane issued an interim stay order, delaying the start of the rates while it considered a challenge by the National Roads Transport Association.

On Thursday the federal court dismissed the application and refused to extend the stay order, meaning the pay rates specified in the road safety remuneration order will come into force.

But the pay rates may have a short life, as government plans to introduce legislation to delay them until January 2017 received crucial support from five of the eight Senate crossbench senators, almost enough to guarantee passage.

The pay rates are controversial, with the government and Australian Industry Group claiming independent contractors will be put out of work by having to lift their costs by as much as 30%.

The Transport Workers Union argues they address pressure drivers are under to speed, drive long hours, skip mandatory rest breaks and skip maintenance on their vehicles because of financial squeeze placed on them by major clients.

TWU national secretary, Tony Sheldon, urged the government to back the road safety remuneration tribunal’s order.

He said “the safe rates order is now in place and I am urging all parties to end the scaremongering and the lies which have been put out about it”.

“This order will benefit the trucking community, it will begin the process of helping to save lives on the roads and making owner-drivers’ businesses more sustainable.”

Australian Industry Group chief executive, Innes Willox, said the decision was disappointing and worrying.

“The tribunal’s order will increase costs for industry and consumers. The order also threatens jobs and work for contractor drivers, and harm to regional and rural areas which are heavily reliant on road transport,” he said.

“The federal court’s decision reinforces the importance of parliament moving quickly to pass foreshadowed legislation preventing orders setting remuneration rates for contractor drivers commencing before 1 January 2017.”

Employment minister, Michaelia Cash, said the government had intervened to support the case challenging the order and was disappointed by the outcome.

“The court’s decision means the payments order will now come into effect. It is now essential that the Senate pass the government’s legislation to delay [it] until 1 January 2017,” she said.

“The government shares the widespread concerns about the impact of the new laws on owner-drivers and the threat the payment order poses to all those who rely on an efficient and competitive road transport industry.”

Source of article click here: The Guardian

The global economy may be trying to dodge potholes, but three U.S. trucking stocks that carry goods among Mexico, the U.S. and Canada look well positioned for steady growth.

Analysts are bullish on shares of Landstar System (LSTR), Marten Transport (MRTN) and P.A.M. Transportation Services (PTSI) — three diverse industry players that are astride some of the most positive trends in trucking.

They are all benefiting from the North American Free Trade Agreement.

Trucks carried 66.5 percent of NAFTA-related freight in the U.S. as of March and continued to be the most heavily utilized mode for moving goods among the U.S., Mexico and Canada, according to the Department of Transportation.

Trucks accounted for $28.4 billion of the $44.6 billion of imports — 63.7 percent — and $26.4 billion of the $37.9 billion of exports — 69.7 percent.

P.A.M.’s Mexico division is among its most profitable, said Daniel Cushman, the trucking company’s president, when he reported record fourth-quarter and 2015 earnings earlier this year.

Marten, meanwhile, benefits from being a leader in specialty temperature-sensitive truckloads. The company transports and distributes food and other consumer packaged goods in the U.S., Canada and Mexico on an expedited basis.

Transportation analysts at Stifel, Nicolaus & Co. have a “buy” rating on both Marten and P.A.M.

“All of the pieces of the puzzle are falling into place,” wrote John Larkin, a Stifel analyst, and his colleagues in a recent report to investors.

They said more regulations from the Obama administration, tighter insurance requirements and a chronic shortage of drivers that limits shipping capacity could translate into higher cargo hauling prices.

“We suspect that supply/demand tightness will become increasingly apparent as we push deeper into 2017,” the analysts said.

That’s why they think trucking stocks could be a good investment.

Still, Landstar recently cut its 2016 earnings-per-share guidance to between 66 cents and 70 cents per share, down from its previous estimate of 70 to 75 cents a share on weaker-than-expected pricing and revenues this year.

That hasn’t spooked S&P Capital IQ analyst J. Corridore, who is maintaining a strong “buy” rating on the stock.

“We are encouraged by strong volume trends and expect pricing to pick up as we move through the year,” Corridore said. “We continue to like LSTR’s asset-light business model, and see LSTR well positioned for growing demand.”

One reason is that Landstar shares a lower-cost business model with P.A.M.

Both companies have cut investment in fixed assets by shifting toward independent owner-operator drivers and commissioned sales agents. That strategy is unlike traditional trucking companies that own their fleets and incur driver salary and benefits costs.

P.A.M also leases trucks to drivers, giving them an opportunity to own a business without incurring capital equipment costs.

Further down the road, Morgan Stanley Research believes trucking companies will benefit from the advent of “intelligent” trucks.  These vehicles can be equipped with advanced driver assistance technology such as lane-departure warnings, automatic emergency braking, night vision and adaptive cruise control. These technologies could reduce insurance expenses by 10 percent to 20 percent and increase fuel economy by 5 percent, according to the investment bank.

“We believe commercial trucking is on the cusp of a generational shift in profitability driven by emerging technologies like intelligent trucks,” Ravi Shanker, a Morgan Stanley Research analyst, wrote in a recent investor report.

Longer term, Shanker sees new technology allowing trucks to “platoon,” traveling in a tightly contained, digitally connected pack of two to five vehicles. Platooning would trim wind resistance, increase fuel efficiency and could ultimately reduce labor costs with the advent of driverless trucks.

As of trading Tuesday, Landstar shares had risen 8.61 percent year-to-date. Marten was up 2.97 percent, and P.A.M. was up 6.52 percent.

Source of article click here: Trucks

Trillium CNG, Love’s Travel Stops compressed natural gas company, was awarded a substantial contract this week by the Pennsylvania Department of Transportation (PennDOT).

Trillium and PennDOT will enter into a 20-year public-private partnership under which Trillium will design, build, operate and maintain 29 compressed natural gas (CNG) facilities in Pennsylvania.

“This is an expansive project that will provide cleaner-burning fuel at a stable cost for transit authorities and residents in dozens of communities,” said Bill Cashmareck, general manager of natural gas for Love’s. “This agreement highlights Trillium’s record of partnering with the public sector and we look forward to building on that strength.”

The locations will supply CNG to more than 1,600 CNG buses at transit agencies across the state. The majority of the facilities will be for private use. Seven locations will serve the motoring public, including light, medium- and heavy-duty trucks. The fueling sites will be strategically placed throughout the state to give fleets and motorists convenient access to more CNG locations. The agreement also includes CNG-related updates to existing transit maintenance and storage facilities.

“This agreement affirms Love’s continued commitment to the CNG industry,” said Cashmareck. “Pennsylvania is one of the largest producers of natural gas and this project will help sustain one of the state’s most valuable industries.”

The locations will be constructed over the next five years, greatly increasing the number of CNG facilities currently open in the state. According to the Alternative Fuels Data Center, Pennsylvania has 61 CNG facilities — 35 of which are open to the public.

Love’s Travel Stops operates five travel stops in Pennsylvania, while Trillium operates three CNG facilities in the state. Trillium has developed several other sites that are now operated by third parties. Visit PennDOT’s website for additional details.

Source of article click here: Truckingnewsonline

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has ordered Gillette, Wyoming-based Bar D Bar Trucking to immediately cease all intrastate and interstate operations after a federal investigation found the carrier to pose an imminent hazard to public safety. Bar D Bar Trucking was served the order on March 11.

On March 8, Bar D Bar Trucking was subject to a federal compliance review investigation, according to the agency. FMCSA safety investigators said they found the company owner and operator Gregory Davis to be in violation of multiple federal safety regulations, including:

• Failing to conduct pre-employment background checks on drivers
• Failing to ensure drivers were qualified before dispatching them in commercial operations
• Failing to properly monitor drivers to ensure compliance with hours-of-service requirements
• Failing to conduct random drug and alcohol tests on drivers
• Using a driver who tested positive for controlled substance
• Failing to ensure that its vehicles were regularly inspected, maintained and repaired and that they met minimum safety standards

In addition, federal investigators said they found that Bar D Bar Trucking had continued to allow Davis to operate a commercial vehicle despite Davis not possessing a valid commercial driver’s license (CDL) and subject to a lifetime CDL disqualification.

“Bar D Bar Trucking’s continued use of unsafe vehicles and its failure to adequately oversee its drivers to ensure compliance with federal safety regulations substantially increases the likelihood of serious harm to its drivers and to the motoring public,” the agency said.

Violating an imminent hazard out-of-service order may result in a penalty of up to $25,000, operating without operating authority may result in a fine of not less than $10,000, and operating without a USDOT number may result in a civil penalty of up to $16,000. A violation of this order may also result in a criminal penalty, including a fine of up to $25,000 and imprisonment not to exceed one year.

Source of article click here: Fleet Owner

Clifford Copp, former owner of defunct Copp Trucking Co. in Kansas City, Kan., faces as much as five years in prison after pleading guilty to evading nearly $1 million in taxes.

Copp filed reports to the Internal Revenue Service in 2001 indicating that Copp Trucking Co. owed about $939,408 in employment taxes that year, but the company never paid them. In February 2004, the IRS assessed trust fund penalties of $669,037 on the tax debt.

Copp Trucking went out of business in 2001. It employed 300 people at the time and had revenue of $25 million in 2000. At the time, Copp cited rising fuel costs, a union dispute with Associated Wholesale Grocers and a costly lawsuit after a wreck. Copp planned to sell the company's KCK headquarters at 2540 S. 88th St. and to liquidate his 175 tractors and 300 trailers.

When the IRS began collection efforts, Copp filed a false statement to conceal his ownership interest in livestock, life insurance and farm equipment. He also formed a company called Wildcat Limo LLC and concealed his ownership interest.

In addition to a potential five-year prison term, Copp faces a fine of as much as $250,000, plus restitution.

The case was investigated by the IRS and is being prosecuted by Assistant U.S. Attorney Chris Oakley in the District of Kansas.

Source of article click here:Kansas City Business Journal